To strengthen and enhance India’s position as the Global IT hub and to use IT and cyber space as an engine for rapid, inclusive and substantial growth in the national economy.
Digital Innovation Hub
India is emerging as the hub for “Digital Skills”. USD 1.6 bn is spent annually on training workforce in the sector. The sector is the largest employer within the private sector, employing 3.9 mn people. India is transforming into a digital economy with 462 mn plus internet subscribers (second after China).
The National Optical Fibre Network (NOFN) aims to connect all 250,000 Gram Panchayats in the country with high-speed broadband. Indian IT industry has more than 16,000 firms, of which 1,000 plus are large firms with over 50 delivery locations in India. The country's cost competitiveness in providing IT services is approximately 3-4 times more cost-effective than the US, continues to be its unique selling proposition in the global sourcing market.
- Domestic market is the fastest growing tech-market in Asia-Pacific with growth of over 11% in 2016-17
- By 2025, the Indian Information Technology and Business Process Management (IT and BPM) sector’s revenue is estimated to reach USD 350 bn
Up to 100% FDI is allowed in data processing, software development and computer consultancy services; software supply services; business and management consultancy services, market research services, technical testing and analysis services, under automatic route
100% FDI is permitted in B2B E-commerce
for more details refer Fact sheet IT & BPM industry
- Largest market share in global services sourcing industry
- Second highest number of internet subscribers in the world
- Third largest tech startup hub of the world
IT BPM's exports have doubled in the last 6 years.
IT-BPM industry revenues stood at USD 154 bn in FY 2016-17. India is the leading off-shoring destination for IT companies in the world. The sector is the largest exporter of the country with USD 116 bn in exports and close to USD 38 bn in domestic share.
Further, USD 14 bn of the domestic market is catered by hardware segment while the remaining USD 24 bn is catered by IT services. The base is consistently and strongly expanding. In FY 2017, it grew 7.6% vis-à-vis India’s merchandise exports (3.1%) and invisible (2.1%). The industry added over USD 11 bn in revenue in 2016-17 over USD 143 bn (FY 2016) and USD 60 bn in last 5 years.
- Exports of USD 116 bn is further segmented as:
- IT services - 56.4%
- BPM accounted for 22.2 % of total IT exports during FY 2017
- Software products and engineering services have a share of 21.3%
- GDP contribution
- Share in global outsourcing market size
- E-commerce growth
- Share in Indian services export
FDI inflow (in USD) in the services sector (Banking, Insurance, Business, Outsourcing, R&D, Courier, Technology Testing Analysis) during April 2000–June 2017
FDI inflow (in USD) in the computer software & hardware from Apr 2000–Jun 2017
Growth in FDI during 2014-17 viz-a-viz 2011-14
November 2016 - Freshdesk, one of first companies from India to offer Software-as-a-Service (SaaS) to global companies, has raised USD 55 mn in the latest round of funding led by Sequoia Capital India and existing investor Accel Partners, estimating to value the company at USD 700 mn.
September 2016 - Reliance Industries Ltd (RIL) plans to set up entrepreneurship hubs in key cities and towns, and a USD 773.1 mn fund, under the name of Jio Digital India Startup Fund, to invest in technology based startups.
February 2016 - Apple Inc. plans to set up its first technology development centre outside the US in Hyderabad with an investment of USD 25 mn, which is expected to create 4,500 jobs